Home alone: Expected increases in rental vacancy and homeownership rates will cause industry revenue to decelerate

Over the five years to 2017, the Apartment Rental industry in Texas is set to experience moderate growth. Industry growth has been primarily buoyed by simultaneous declines in the homeownership rate in Texas and the rental vacancy rate. Over the five years to 2022, industry revenue is expected to continue growing but at a severely decelerated rate. This slowdown is anticipated to be caused by expected increases in the rental vacancy rate and the homeownership rate. With increased external competition from the housing market and an increased supply of vacant luxury units, industry operators will likely be forced to charge lower rents to fill vacant units, slowing the industry's growth...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Increases in the rental vacancy rate and homeownership rate are expected to slow industry growth
  • More consumers are opting to rent apartments rather than purchase homes or property
  • With excess supply at the higher end of the market, growth in rental rates will slow
  • Industry Report - Industry Investment Chapter

    The Apartment Rental industry in Texas exhibits a high level of capital intensity. IBISWorld estimates that for every dollar spent on labor in 2017, $1.29 will be spent on capital. Most of the industry's capital expenditure goes to the development and purchase of buildings, with some complexes containing hundreds of rental units. Any building improvements or refurbishments are also counted as capital expenditures. Smaller players, which usually operate a single unit, have lower capital outlays but these can still be significant in terms of incoming revenue. Compared with such capital costs, wages account for a small portion of costs. Large companies can also outsource labor by hiring property management companies, thus reducing labor expenses. Ove...purchase to read more.

    Additional Insights for the Apartment Rental in Texas Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Apartment Rental in Texas Industry are

  • Financial structure of the company
  • Management of a high-quality assets portfolio
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Rental vacancy rates and Homeownership rate in Texas in the Apartment Rental in Texas industry impact industry performance..

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    What's in this report

    What is the Apartment Rental in Texas Industry?

    Operators in this industry act as lessors of buildings used as residences or dwellings. Industry participants are owners of residential buildings and establishments that rent real estate and act as lessors by subleasing it to others. In addition to apartment rentals, the industry also includes single-family homes, town houses, cooperatives and condominiums.

    Industry Products
  • Single unit buildings (attached and detached)
  • Buildings with two to four units
  • Buildings with five to nine units
  • Buildings with 10 to 19 units
  • Buildings with 20 to 49 units
  • Buildings with 50 or more units
  • Manufactured and mobile homes
  • Cooperatives and condominiums
  • Industry Activities
  • Renting or leasing single-unit buildings
  • Renting or leasing multi-unit buildings
  • Renting or leasing manufactured and mobile homes
  • Renting or leasing cooperatives and condominiums
  • Renting or leasing other residential buildings
  • Similar Industries
  • Commercial Leasing
  • Storage & Warehouse Leasing
  • Land Leasing
  • Property Management
  • Apartment Rental in California
  • Commercial Leasing in California
  • Storage & Warehouse Leasing in California
  • Apartment Rental in New York
  • Commercial Leasing in New York
  • Storage & Warehouse Leasing in New York
  • Apartment Rental in Illinois
  • Commercial Leasing in Illinois
  • Commercial Leasing in Texas
  • Apartment Rental in Florida
  • Commercial Leasing in Florida
  • Apartment Rental in Massachusetts
  • Commercial Leasing in Massachusetts
  • Commercial Leasing in Ohio
  • Apartment Rental in Ohio
  • Apartment Rental in Pennsylvania
  • Commercial Leasing in Pennsylvania
  • Apartment Rental in New Jersey
  • Commercial Leasing in New Jersey
  • Commercial Real Estate in New Jersey
  • Apartment Rental in Georgia
  • Commercial Leasing in Georgia
  • Commercial Real Estate in Georgia
  • Apartment Rental in Michigan
  • Commercial Leasing in Michigan
  • Commercial Real Estate in Michigan
  • Apartment Rental in Wisconsin
  • Commercial Leasing in Wisconsin
  • Commercial Real Estate in Wisconsin
  • Apartment Rental in Washington
  • Commercial Leasing in Washington
  • Commercial Real Estate in Washington
  • Apartment Rental in Virginia
  • Commercial Leasing in Virginia
  • Apartment Rental in Tennessee
  • Commercial Leasing in Tennessee
  • Apartment Rental in Missouri
  • Commercial Leasing in Missouri
  • Apartment Rental in North Carolina
  • Commercial Leasing in North Carolina
  • Storage & Warehouse Leasing in North Carolina
  • Apartment Rental in Minnesota
  • Commercial Leasing in Minnesota
  • Commercial Real Estate in Minnesota
  • Apartment Rental in Maryland
  • Commercial Leasing in Maryland
  • Commercial Real Estate in Maryland
  • Apartment Rental in Colorado
  • Commercial Leasing in Colorado
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Rental vacancy rates
  • Homeownership rate in Texas
  • Number of adults aged 20 to 64 in Texas
  • Median household income in Texas

  • Current Performance
  • Dynamics of demand
  • The missing middle
  • Demographics of demand
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Economy provides stimulus
  • Favorable demographics
  • Supply and competition from housing
  • Table: Apartment Rental in Texas Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Apartment Rental in Texas Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Finance and Insurance
  • Retirement & Pension Plans

  • Key Selling Industries
  • Construction
  • Finance and Insurance
  • Landscaping Services
  • Property Management
  • Real Estate Sales & Brokerage
  • Utilities

  • Products & Services
  • Single unit buildings (attached and detached)
  • Buildings with 10 to 19 units
  • Buildings with 20 to 49 units
  • Buildings with five to nine units
  • Buildings with two to four units
  • Buildings with 50 or more units
  • Cooperatives and condominiums
  • Manufactured and mobile homes
  • Chart: Apartment Rental in Texas Industry Products and Services Segmentation

  • Major Markets
  • One-person households
  • Two-person households
  • Households of four or more people
  • Three-person households
  • Chart: Major Market Segmentation for the Apartment Rental in Texas Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Depreciation
  • Wages
  • Purchases and marketing
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Apartment Rental in Texas

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Apartment Rental in Texas Industry

  • Better Homes and Gardens Real Estate LLC, Ebby Halliday Properties Inc., Briggs Freeman Sotheby’s International Realty, Kuper Sotheby’s International Realty, Realty Austin,
  • Table: Better Homes and Gardens Real Estate LLC - financial performance
  • Table: Ebby Halliday Properties Inc. - financial performance
  • Table: Briggs Freeman Sotheby’s International Realty - financial performance
  • Table: Kuper Sotheby’s International Realty - financial performance
  • Table: Realty Austin - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Apartment Rental in Texas Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Apartment Rental in Texas Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Rental Vacancy Rate (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Another name for an apartment or home.
  • Funds From Operations
  • Funds used to define cash flow from operations for REITs that are calculated by adding depreciation and amortization expenses to earnings.
  • Leadership In Energy And Environment Design (Leed)
  • An eco-oriented building certificate program established under the US Green Building Council. LEED-certified buildings are energy efficient and green certified.
  • Occupancy Rate
  • The amount of occupied real estate space as a percentage of total available space.
  • Real Estate Investment Trust (Reit)
  • A legal entity that uses pooled investor capital to purchase and manage income property or mortgage loans. To qualify as an REIT, the entity must distribute at least 90.0% of taxable income.
  • Rental Agreements
  • An agreement with no set period of occupancy in which landlords and tenants are free to make changes to the contract at the end of each 30-day period.
  • Vacancy Rate
  • The amount of unoccupied real estate space as a percentage of total available space.
  • What Our Customers Say

    Why buy this report?

    The Apartment Rental in Texas industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

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    This report on Apartment Rental in Texas:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Apartment Rental in Texas market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Apartment Rental in Texas, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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